Bangladesh Bank is the central bank and monetary authority of the country. It came into existence under the Bangladesh Bank Order 1972 which took effect on 16 December 1971. Through this order, the entire operation of the former State Bank of Pakistan in the eastern wing was transferred to Bangladesh Bank. Bangladesh Bank is empowered to act as the watchdog of the country’s BANKING SYSTEM, and all scheduled banks are accountable to Bangladesh Bank, which has extensive powers to ensure soundness of the banking system.
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